One of my guilty pleasures lately is a British Baking Series on Netflix. I usually have it on as background noise if I am cleaning up the house or working from home. I love to see the artsy creativity contestants use to interpret the challenges and the risks they take to stand out and avoid elimination.
Even though I am lost in their baking processes, I do notice that if the bakers miss one tiny detail like a minute too long in the oven or an icing that is just a little too heavy, things get messy and fall apart quickly.
It is interesting to compare that concept to any process in life. In investing, there are a million “recipes” to draw inspiration from and it can often feel overwhelming when trying to balance risk and reward.
When starting out, earning income and getting money saved is a beautiful, simple habit to adhere to. We see so many “accidental millionaires” who were simply offered a 401k + match and just stayed on that long “boring” path all through their working years.
They never got too cute about what they were invested in. They just plowed money away and took advantage of company matches, profit sharing benefits, and time in the market above all else.
When monies begin to accumulate, you might want to get a little more tactical about what investment vehicles you participate in. Just like any recipe, this is a good time to fine tune risk and time management pursuant to your goals.
After being through a market correction or two, you might better understand how you digest risk. You will better identify how conservative or aggressive you really are when it comes to the emotions of long-term investing. Many people hire an advisor at this juncture. Whether for financial advice or emotional support, they enjoy the idea that there is a second set of eyes on the process to avoid a potential disaster.
Finally, when approaching and entering retirement, it is a great time to balance out growth and preservation to ensure you’ve got enough money to last through retirement, and perhaps, even leave a legacy. A time to enjoy the fruits of your labor. In contrast to the time and elimination constraints of a baking competition, investing over a long period of time leaves plenty of room for mistakes to be made and recovery plans to be implemented. Your advisor should feel more like a teammate than a judge and help offer solutions rather than restrictions. Control what you can control, save what you can save, and leave the pressure of details to us!
Financial Advisor
Prime Capital Financial
Cedar Rapids, Iowa
primefinancialcedarrapids.com
(319) 269-7143
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite#150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness.
Ashlea Jones